Solo Oil has signed a Memorandum of Understanding (MoU) to acquire 15 per cent shareholding in Swiss-based Pan Minerals & Oil AG to assist the latter in existing production agreements onshore West Africa
Solo Oil will pay US$310,760 plus 60mn new ordinary Solo Oil shares of US$0.02 each to Pan Minerals & Oil AG.
In addition, Pan Minerals & Oil AG has granted Solo Oil a 90-day option for a first right of refusal (FROR) to participate in any future equity financing of Pan Minerals & Oil AG for the development of its West African oil production opportunities, which will allow Solo Oil to increase its direct equity interest in Pan Minerals & Oil AG from 15 per cent to up to 49.9 per cent, subject to any constraints.
Pan Minerals & Oil AG has invested nearly US$3mn up to date in the pursuit of farm-ins on proven oil fields in West Africa and Solo Oil’s investment will assist it in completion of these projects.
